Toncoin’s (TON) price has had a disappointing run throughout July, which seems to be continuing into August.
The price drawdown has pushed investors to switch their optimism into pessimism, which could create challenges for TON.
Toncoin Investors Turn Bearish
Toncoin’s price decline has seemingly pushed investors to the brink of shedding their optimism for pessimism once again. This is evident in TON’s negative funding rate, which indicates that investors are predominantly taking short positions. This trend suggests that many are betting on a continued decline in the asset’s value.
The negative funding rate reflects a bearish sentiment among traders, who expect further downward movement in the market. This could prove fatal for investors who buy at the current relatively low prices.
Read more: 6 Best Toncoin (TON) Wallets in 2024
The Market Value to Realized Value (MVRV) ratio also presents buy opportunities. The MVRV ratio assesses investor profit and loss. Currently, Toncoin’s 30-day MVRV stands at -11%, indicating losses and possible buying pressure.
Historically, TON tends to correct when the MVRV is between -5% and -15%, which usually signals the start of recoveries and rallies and marks it as an accumulation opportunity zone.
However, it must be noted that the present market conditions are presenting a bearish couple of days before recovery begins. Thus, Telegram coin enthusiasts should look for signs of recovery before jumping in to accumulate.
TON Price Prediction: Keeping Support Intact
Toncoin’s price at $6.15 at the time of writing is testing the key support of $6.04. If the aforementioned bearish factors weight heavily on the Telegram coin, further drawdown can be expected.
This would result in a slip below $6.04, with TON marking a three-month low. The potential decline could send Toncoin’s price down to $5.49.
Read more: What Are Telegram Bot Coins?
However, if the support remains intact, Toncoin’s price could bounce back, and reclaiming $6.50 would enable further recovery. This would invalidate the bearish thesis, pushing the price towards $7.00.
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Disclaimer
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